Conexant Q1 2009 financial results

1. Editorial Contact: Investor Relations Contact:
Gwen Carlson Scott Allen
Conexant Systems, Inc. Conexant Systems, Inc.
(949) 483-7363 (949) 483-2698
CONEXANT REPORTS FINANCIAL RESULTS FOR THE
FIRST QUARTER OF FISCAL 2009
Company Also Completes Expense-reduction Actions
NEWPORT BEACH, Calif., Jan. 29, 2009 – Conexant Systems, Inc. (NASDAQ:
CNXT) today announced financial results for the first quarter of fiscal 2009 that were in
line with updated guidance provided on Dec. 15, 2008. The company also completed
expense-reduction actions that are expected to save approximately $4 million per quarter.
First Fiscal Quarter Financial Results
Conexant presents financial results based on Generally Accepted Accounting
Principles (GAAP) as well as select non-GAAP financial measures intended to reflect its
core results of operations. The company believes these core financial measures provide
investors with additional insight into its underlying operating results. Core financial
measures exclude certain non-cash and other non-core items as fully described in the
GAAP to non-GAAP reconciliation in the accompanying financial data.
Revenues for the first quarter of fiscal 2009 were $86.5 million. Core gross
margins were 54.1 percent of revenues. Core operating expenses were $43.5 million, and
core operating income was $3.3 million. Core net loss from continuing operations was
$2.9 million, or $0.06 per share.
On a GAAP basis, gross margins were 53.4 percent of revenues. GAAP operating
expenses were $46.5 million. GAAP operating loss was $0.4 million, and GAAP net loss
from continuing operations was $10.5 million, or $0.21 per share.
The company ended the quarter with $110.3 million in cash and cash equivalents, a
sequential increase of approximately $4.4 million.
Expense-reduction Actions
The company recently completed actions that resulted in the elimination of
approximately 140 positions worldwide, which represented a total headcount reduction of

2. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 2
more than 11 percent. Conexant also announced that it has suspended the company match
for the domestic 401(k) plan and imposed stringent restrictions on spending.
In total, the company expects to save approximately $4 million per quarter when it
realizes the full benefit of the headcount reductions in the June-ending third quarter of
fiscal 2009.
Business Perspective
“In an environment where we continued to see customer push-outs and
cancellations, I’m pleased to report that we met the updated guidance we provided in
December,” said Scott Mercer, Conexant’s chairman and chief executive officer.
“Revenues of $86.5 million were consistent with the range we anticipated, and core gross
margins of 54.1 percent of revenues were at the high end of our revised expectations. Core
operating income of $3.3 million and a core net loss from continuing operations of $2.9
million, or $0.06 per share, were also within the ranges we expected.
“The worldwide economic crisis that has impacted the financial performance of
many of our peers, customers, and suppliers has dramatically affected us as well,” Mercer
said. “In response to our declining revenues and deteriorating financial performance, we
recently completed cost-reduction actions that included a significant headcount reduction.
This reduction will not affect any of our major product-development programs. By
keeping our teams and investments essentially intact, we put ourselves in a position to gain
market share when the economic recovery eventually begins. Until then, we will continue
to focus on contributing to the success of our customers by delivering innovative products
on schedule.”
Business Outlook
Conexant expects revenues for the second quarter of fiscal 2009 to be in a range
between $68 million and $74 million, or 14 to 21 percent lower sequentially, as a result of
the effects of the overall economic environment. Core gross margins for the second fiscal
quarter are expected to be between 52 and 53 percent of revenues. The company expects
core operating expenses to be approximately $42 million. As a result, the company
anticipates that the second fiscal quarter core operating loss will be in a range between $3
million and $7 million. Core net loss is expected to be between $0.18 and $0.26 per share.

3. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 3
Conference Call Today
Financial analysts, members of the media, and the public are invited to participate in a conference
call that will take place today at 5:00 p.m. Eastern Time (ET)/ 2:00 p.m. Pacific Time (PT). Scott Mercer,
chairman and chief executive officer, Christian Scherp, president, and Jean Hu, senior vice president and
chief financial officer, will discuss first quarter fiscal 2009 financial results and the company’s outlook. To
listen to the conference call via telephone, dial 866-650-4882 (in the US and Canada) or 706-679-7338 (from
other international locations); participant pass code: Conexant; Conference ID number: 82022913.
To listen via the Internet, visit the Investor Relations section of Conexant's Web site at
www.conexant.com/ir. Playback of the conference call will be available shortly after the call concludes and
will be accessible on Conexant's Web site at www.conexant.com/ir or by calling 800-642-1687 (in the U.S.
and Canada) or 706-645-9291 (from other international locations); Conference ID number: 82022913.
About Conexant
Conexant’s comprehensive portfolio of innovative semiconductor solutions includes products for
imaging, video, audio, and Internet connectivity applications. Conexant is a fabless semiconductor company
that recorded revenues of more than $500 million in fiscal year 2008. The company is headquartered in
Newport Beach, Calif. To learn more, please visit www.conexant.com
Safe Harbor Statement
“Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995: This release
includes forward-looking statements intended to qualify for the safe harbor from liability established by the
Private Securities Litigation Reform Act of 1995. These forward-looking statements generally can be
identified by phrases such as Conexant or its management “believes,” “expects,” “anticipates,” “foresees,”
“forecasts,” “estimates” or other words or phrases of similar import. Similarly, statements in this release that
describe our business strategy, outlook, objectives, plans, intentions or goals also are forward-looking
statements. All such forward-looking statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those in the forward-looking statements.
These risks and uncertainties include, but are not limited to: pricing pressures and other competitive
factors; our ability to timely develop and implement new technologies and to obtain protection for the related
intellectual property; the cyclical nature of the semiconductor industry, which is subject to significant
downturns that may negatively impact our business, financial condition, cash flow and results of operations;
the cyclical nature of the markets addressed by our products and our customers’ products; volatility in the
technology sector and the semiconductor industry; the risk that capital needed for our business and to repay
our indebtedness will not be available when needed; our successful development of new products; the timing
of our new product introductions and our product quality; demand for and market acceptance of our new and
existing products; our ability to anticipate trends and develop products for which there will be market
demand; our ability to successfully execute asset acquisitions, dispositions, mergers and restructurings; the
availability of manufacturing capacity; changes in our product mix; product obsolescence; the ability of our
customers to manage inventory; the financial risks of default by tenants and subtenants in the space we own
or lease; the risk that the value of our common stock may be adversely affected by market volatility or failure
to meet all applicable listing requirements of the NASDAQ Global Market; the substantial losses we have
incurred; the uncertainties of litigation, including claims of infringement of third-party intellectual property
rights or demands that we license third-party technology, and the demands it may place on the time and
attention of our management and the expense it may place on our company; our ability to identify and
execute acquisitions, divestitures, mergers or restructurings, as deemed appropriate by management; general
economic and political conditions and conditions in the markets we address; and possible disruptions in
commerce related to terrorist activity or armed conflict, as well as other risks and uncertainties, including
those detailed from time to time in our Securities and Exchange Commission filings.
The forward-looking statements are made only as of the date hereof. We undertake no obligation to
update or revise the forward-looking statements, whether as a result of new information, future events or
otherwise.
###
Conexant is a registered trademark of Conexant Systems, Inc. Other brands and names contained in this
release are the property of their respective owners

4. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 4
CONEXANT SYSTEMS, INC.
GAAP Condensed Consolidated Statements of Operations
(unaudited, in thousands, except per share amounts)
Fiscal Quarter Ended
January 2, October 3, December 28,
2009 2008 2007
Net revenues (Note 1) .......................................................................... $ 86,498 $ 122,615 $ 145,933
Cost of goods sold................................................................................ 40,348 56,300 63,812
Gross margin ........................................................................................ 46,150 66,315 82,121
Operating expenses:
Research and development ................................................................ 26,313 29,279 37,823
Selling, general and administrative .................................................... 19,483 21,008 20,014
Amortization of intangible assets ....................................................... 3,371 4,455 4,571
Gain on sale of intellectual property .................................................. (12,858) — —
Special charges (Note 2) ................................................................... 10,209 2,415 4,349
Total operating expenses ............................................................ 46,518 57,157 66,757
Operating (loss) income ....................................................................... (368) 9,158 15,364
Interest expense .................................................................................... 6,054 6,852 9,449
Other expense, net................................................................................ 2,295 3,352 5,345
(Loss) income before income taxes and (loss) gain on equity
method investments ............................................................................ (8,717) (1,046) 570
Provision for income taxes................................................................... 912 373 862
Loss before (loss) gain on equity method investments ........................ (9,629) (1,419) (292)
(Loss) gain on equity method investments ........................................... (846) (808) 3,773
Net (loss) income from continuing operations ..................................... (10,475) (2,227) 3,481
Gain on sale of discontinued operations .............................................. — 6,268 —
Loss from discontinued operations (Note 3) ........................................ (7,214) (3,124) (12,699)
Net (loss) income ................................................................................. $ (17,689) $ 917 $ (9,218)
Basic and diluted net (loss) income per share from continuing
operations ........................................................................................... $ (0.21) $ (0.04) $ 0.07
Basic and diluted net gain per share from sale of discontinued
operations ........................................................................................... $ — $ 0.13 $ —
Basic and diluted net loss per share from discontinued operations...... $ (0.15) $ (0.07) $ (0.26)
Basic and diluted net (loss) income per share ...................................... $ (0.36) $ 0.02 $ (0.19)
Shares used in basic per-share computation ......................................... 49,657 49,565 49,236
Shares used in diluted per-share computation ...................................... 49,657 49,565 49,399
Note 1 - Net revenues for the fiscal quarter ended December 28, 2007 includes $14.7 million for the buyout of a
future royalty stream.
Note 2 - Special charges in the fiscal quarter ended January 2, 2009 include $6.6 million of restructuring charges
and a charge of $3.7 million related to a legal settlement. Special charges for the fiscal quarter ended
October 3, 2008 and December 28, 2007 consist primarily of restructuring charges.
Note 3 – Loss from discontinued operations in the fiscal quarter ended January 2, 2009 includes $7.0 million of
restructuring charges related to facilities formerly occupied by the Broadband Media Processing
business sold in the last quarter of fiscal 2008.

5. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 5
CONEXANT SYSTEMS, INC.
Reconciliation of GAAP Financial Measures to Non-GAAP Core Financial Measures
(unaudited, in thousands, except per share amounts)
Fiscal Quarter Ended
January 2, October 3, December 28,
2009 2008 2007
GAAP net revenues............................................................................................... $ 86,498 $ 122,615 $ 145,933
Royalty buyout (l) ............................................................................................. — — (14,700)
Non-GAAP Core net revenues less impact of royalty buyout............................... $ 86,498 $ 122,615 $ 131,233
GAAP cost of goods sold ...................................................................................... $ 40,348 $ 56,300 $ 63,812
Cost of goods sold adjustments (a, f) ................................................................ (628) (525) (114)
Non-GAAP Core cost of goods sold ..................................................................... 39,720 $ 55,775 $ 63,698
GAAP gross margin .............................................................................................. $ 46,150 $ 66,315 $ 82,121
Gross margin adjustments (a, f) ........................................................................ 628 525 114
Non-GAAP Core gross margin ............................................................................. 46,778 66,840 82,235
Royalty buyout (l) ............................................................................................ — — (14,700)
Non-GAAP Core gross margin less impact of royalty buyout.............................. $ 46,778 $ 66,840 $ 67,535
GAAP operating expenses ................................................................................... $ 46,518 $ 57,157 $ 66,757
Stock-based compensation (a) .......................................................................... (2,330) (2,334) (2,570)
Amortization of intangible assets (b) ................................................................ (3,371) (4,455) (4,571)
Gain on sale of intellectual property (c) ............................................................ 12,858 — —
Special charges (d) ............................................................................................ (10,209) (2,590) (4,349)
Acquired research and development (e)............................................................ — (800) —
Non-GAAP Core operating expenses ................................................................... $ 43,466 $ 46,978 $ 55,267
GAAP operating (loss) income ............................................................................. $ (368) $ 9,158 $ 15,364
Gross margin adjustment (a, f) ......................................................................... 628 525 114
Operating expense adjustments (a-e) ................................................................ 3,052 10,179 11,490
Non-GAAP Core operating income ...................................................................... 3,312 $ 19,862 26,968
Royalty buyout (l) ............................................................................................. — — (14,700)
Non-GAAP Core operating income less impact of royalty buyout....................... $ 3,312 $ 19,862 $ 12,268
GAAP other expense, net ...................................................................................... $ 2,295 $ 3,352 $ 5,345
Unrealized losses on Mindspeed warrant (g) ................................................... (482) (2,312) (8,364)
Gains on sales of equity securities (h) .............................................................. 51 21 —
Loss on impairment of facility (i) .................................................................... — (1,435) —
Loss on impairment of marketable securities (j) ............................................... (2,635) — —
Non-GAAP Core other income ............................................................................. $ (771) $ (374) $ (3,019)
GAAP net (loss) income from continuing operations ........................................... $ (10,475) $ (2,227) $ 3,481
Gross margin adjustments (a, f) ....................................................................... 628 525 114
Operating expense adjustments (a-e) ................................................................ 3,052 10,179 11,490
Losses (gains) on equity method investments (k) ............................................. 846 808 (3,773)
Other expense adjustments (g-j) ....................................................................... 3,066 3,726 8,364
Non-GAAP Core net (loss) income from continuing operations .......................... $ (2,883) $ 13,011 $ 19,676
Basic and Diluted net (loss) income per share from continuing operations:
GAAP Basic and Diluted .................................................................................. $ (0.21) $ (0.04) $ 0.07
Non-GAAP Basic and Diluted .......................................................................... $ (0.06) $ 0.26 $ 0.40
Shares used in basic and diluted per-share computations:
49,657 49,565 49,236
Basic......................................................................................................................
49,657 49,565 49,399
Diluted ..................................................................................................................
See “GAAP to Non-GAAP Core Adjustments” below

6. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 6
GAAP to Non-GAAP Core Adjustments:
(a) Stock-based compensation expense is based on the fair value of all stock options and employee stock
purchase plan shares in accordance with SFAS No. 123(R).
(b) Amortization of intangible assets resulting from business combinations.
(c) Gain on sale of intellectual property which is not part of our core, on-going operations.
(d) Special charges in the fiscal quarter ended January 2, 2009 include $6.6 million of restructuring charges
and a charge of $3.7 million related to a legal settlement. Special charges for the fiscal quarter ended
October 3, 2008 and December 28, 2007 consist primarily of restructuring charges.
(e) For the fiscal quarter ended October 3, 2008, the adjustment relates to a purchase accounting expense of
in-process research and development acquired through the purchase of the “SigmaTel” multifunction
printer imaging product lines.
(f) The fiscal quarter ended October 3, 2008 includes the impact of environmental remediation charges and
a charge from inventory acquired through the purchase of the “SigmaTel” multifunction printer imaging
product lines.
(g) Unrealized losses associated with the change in the fair value of our warrant to purchase 6 million shares
of Mindspeed Technologies, Inc. common stock, which is accounted for as a derivative instrument.
(h) Gains on sales of equity securities or on the liquidation of companies in which we held equity securities.
(i) For the fiscal quarter ended October 3, 2008, the adjustment relates to the loss incurred on a non-
cancelable lease obligation.
(j) Loss from other than temporary impairment of marketable securities.
(k) Losses (gains) losses on equity method investments.
(l) The fiscal quarter ended December 28, 2007 includes $14.7 million of non-recurring revenue that
resulted from the buyout of a future royalty stream.
Non-GAAP Financial Measures:
We have presented non-GAAP net revenues, non-GAAP cost of goods sold, non-GAAP gross margin, non-
GAAP operating expenses, non-GAAP operating income, non-GAAP other income, non-GAAP net (loss)
income from continuing operations and non-GAAP basic and diluted net (loss) income per share from
continuing operations, on a basis consistent with our historical presentation to assist investors in
understanding our core results of operations on an on-going basis. These non-GAAP financial measures also
enhance comparisons of our core results of operations with historical periods. We are providing these non-
GAAP financial measures to investors to enable them to perform additional financial analysis and because it
is consistent with the financial models and estimates published by analysts who follow our company.
Management believes that these are important measures in the evaluation of our results of operations.
Investors should consider non-GAAP financial measures in addition to, and not as a substitute for, or
superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP
financial measures presented by us may be different than non-GAAP financial measures presented by other
companies.
GAAP Guidance:
We do not present GAAP guidance due to our inability to project (i) future market prices of the common
stock of a third party underlying a derivative financial instrument, (ii) realized gains or losses from the sale of
equity securities in third parties, and (iii) the financial results of investments accounted for using the equity
method of accounting.

7. Conexant Reports Financial Results for the First Quarter of Fiscal 2009 7
CONEXANT SYSTEMS, INC.
Condensed Consolidated Balance Sheets
(unaudited, in thousands)
January 2, October 3,
2009 2008
ASSETS
Current assets:
Cash and cash equivalents.................................................................................. $ 110,327 $ 105,883
Restricted cash .................................................................................................. 20,500 26,800
Receivables ........................................................................................................ 40,514 48,997
Inventories ......................................................................................................... 26,014 36,439
Other current assets ............................................................................................ 40,885 38,537
Total current assets ..................................................................................... 238,240 256,656
Property, plant and equipment ........................................................................... 21,332 24,912
Goodwill ............................................................................................................ 111,360 110,412
Intangible assets ................................................................................................. 9,910 14,971
Other assets ........................................................................................................ 39,010 39,452
Total assets .................................................................................................. $ 419,852 $ 446,403
LIABILITIES AND SHAREHOLDERS’ DEFICIT
Current liabilities:
Current portion of long-term debt ....................................................................... $ 17,570 $ 17,707
Short-term debt ................................................................................................... 32,868 40,117
Accounts payable ................................................................................................ 22,783 34,894
Accrued compensation and benefits ................................................................... 11,952 14,989
Other current liabilities ....................................................................................... 40,504 44,385
Total current liabilities ................................................................................. 125,677 152,092
Long-term debt ................................................................................................... 373,830 373,693
Other liabilities ................................................................................................... 73,310 57,352
Total liabilities ............................................................................................. 572,817 583,137
Shareholders’ deficit .............................................................................................. (152,965) (136,734)
Total liabilities and shareholders’ deficit ..................................................... $ 419,852 $ 446,403
Selected Other Data
(unaudited, in thousands)
Fiscal Quarter Ended
January 2, October 3, December 28,
2009 2008 2007
Revenues By Region:
Americas ................................................................................................ $ 6,475 $ 8,391 $ 8,754
Asia-Pacific ............................................................................................ 76,462 108,577 130,621
Europe, Middle East and Africa ............................................................. 3,561 5,647 6,558
$ 86,498 $ 122,615 $ 145,933
Cash Flow Data:
Depreciation of PP&E ............................................................................ $ 2,649 $ 2,846 $ 4,078
Capital expenditures ............................................................................... $ 181 $ 1,718 $ 1,392